Business in Practice Report: Micro to Large Business Types Analysis

This report provides a comprehensive analysis of different business types, including micro, small, medium, and large businesses, detailing their characteristics and examples. It further explores various business structures such as sole proprietorships, partnerships, limited liability businesse...Read More

Business in Practice

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
SECTION 1......................................................................................................................................3
Definition, characteristics and example of micro business, small business, medium size
business and large size business .................................................................................................3
SECTION 2......................................................................................................................................5
Definition, characteristics and example of sole trader business, partnership, limited liability
business, public limited liability business and Cooperative. ......................................................5
Using PESTLE analysis explain how different external factors affect the performance of a
business.......................................................................................................................................6
PESTLE Analysis is the important tool that is being made in order to know all the problems
with the macro environment in the business. This mainly covers out all the external impact in the
company or the organisation which use to impart all the important area through which they can
cover out all the methods and the regions which is being considered. The PESTLE analysis of
the Marks and Spencer is being framed below:...............................................................................6
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business is mainly one of the most important element that helps out to maintain the
growth in the market and with that varies areas and the production can there by be increased. In
order to earn profit for the general public there tends to be made a profit through the business and
with that the companies tends to maintain all the revenues and trading. The industries there by
maintain on varies sectors like industrial, commercial and also in varies professional areas and
sectors. In order to maintain the smooth functioning the companies will have to maintain all the
operations with the external environment(Aslaksen, 2019). The organisation chosen for this
report in Marks & Spencer, a multinational company which helps to provide all the food,
clothing and the home essentials. This report will deal with all the various kinds of business and
the PESTLE analysis for the external environmental factor.
MAIN BODY
SECTION 1
Definition, characteristics and example of micro business, small business, medium size business
and large size business
Business is one of the important factor that helps out to maintain all the profit and the
gains through which varies areas and nature can be attained. As for the success of the company
there can be made various businesses that has attain sizes like micro, small, medium and large
businesses.(Astrachan and et. al., 2020). All these business helps in increasing the revenue and
the growth of the company by maintaining and applying all the strategy and the rules which
enhance the production in various manner.
Micro size Businesses
In this business there are 0 to 9 employees use to work and with that there annual
turnover in the business that will amount to approx £2 million. Usually these are small
businesses and the employees use to invest the low amount in order with that a very low
maintain of funding use to take place.
Characteristics
 This business use to set up in all the limited areas and with low scale margin.

 The number of employees is comparatively low in this business as there has been seen
that it comprise of 0 to m9 employees(Blachetta, and Kleinaltenkamp, 2019). The profit that is being generated is comparatively low and the target markets also covers
the low revenues.
For instance- the Boss brewing company covers such micro business practise.
Small size businesses
The small business mainly being comprised of the employees that may be in between the
10 to 49 and the turnover that is being calculated in it is £10 million.
Characteristics
 The small scale business use to be carried out by the sole proprietor as there tends to be
the low investment in the company.
 All the responsibility of the business will lie on the owner of the company. As they tends
to manage the business in a proper way. The investment in the company is limited and it carried out on low funding.
For instance- Broadsword Event House
Medium size businesses
This type of business involves the large market share and with that all the capital
investment in the company and also the high establishment is being framed out. There are mainly
50 to 250 employees being working in such business and the net turnover of such business is
mainly £50 million.
Characteristics
 This kind of business indulge in large investment and is being operated by various
business practises.
 The owner or the company is being owned by more than one person usually with various
running of business. The medium business use to be relocated and can be expanded in varies areas an d also in
the different locations and the countries that helps out to maintain the growth.
For instance- The Verdant leisure use to frame there business in various countries and has also
more then one owner in it(Carlucci, and Schiuma, 2018).
Large Size businesses

This is the international business or the business that has been expanded in all the areas
globally. As there are about more then 250 employees use to work in such business and also with
that the net turnover of the company will be enlarged with about £50 million. This business is the
highest attaining expanded business in all the areas.
Characteristics
 This business is not just owned by one person as this usually involves various owners that
work as the partners in the company(Child, 2019).
 The investment being taken by the companies are raised through the equity and also by
debt as there considers to be the large investment. The market have attained the highest share and with that it carries the global expansion in
all the areas.
For instance- Sainsbury is the multi national company which carries the market globally and use
to maintain highest profit.
Basis Micro Small Medium Large
The employees
working in the
company
0-9 Between 10 to 49 Between 50- 250 More than 250
Turnover of the
company
2 million euros 10 million euros 50 million euros Above 50 million
euros
SECTION 2
Definition, characteristics and example of sole trader business, partnership, limited liability
business, public limited liability business and Cooperative.
Business is an important tool and it frames out in various form which are distinguished
and made according with all the incorporation they covers factors like liability, owner etc. There
are various type of business organisation that are on the accord of varies form as follows-
Sole Proprietorship
This kind of business covers the single or the one own that use to entrust with all the
responsibilities in the handling of daily operations made for business. There sole owner use to
be personally liable and creates the main liability for maintain the business with various revenues
with its profit and all the losses tends to be given to owner.

Characteristics-
 It has unlimited liability covered for owner with all debts raised in business.
 less funding is needed in this business. Sole proprietorship do not have legal formalities which covers no formality.
Example- All computer repair business.
Partnership
Such business covers two or more partners liable to share all responsibilities and profits
in firm. This covers partnership agreement that concerned in between partners so as to mutually
make decision in business.
Characteristics-
 All agreement are being covered in it.
 This is not a separate legal entity.
 They will have unlimited liability in the debt and liability in firm.
Example- Mumsnet
Limited liability partnership
It covers out both the partners and the company and involves the two or more than two
persons they are usually being formed in professional they ,mainly have the limited liability in
all the areas.
Characteristics-
 Have transparent tax system ie: all taxes are paid by the partners..
 Have limited liabilities in partners with capital contribution.
Example- law firms.
Company
It is incorporated in the Companies house. Which has separate legal entity differs from
that of owners. They makes an artificial personality through the perpetual succession.
It is of two types public and private,. Example- Public compnay like Tesco company.
Example- New Look company in UK is a private company.
Characteristics-

 Have separate legal entity.
 Mainly being the perpetual succession.
 common seal of the business
Cooperatives
This is voluntary associations who works in social service other than profit motive. It has
members who use to manage and also control the business.
Characteristics-
 Usually a non profit association.
 owned and also controlled by members.
Example- Blue diamond company
SECTION 3
Identify different organisational structures and explain how organisational structure affects
business productivity.
The organisational structure carries out the system which gives the complete knowledge
about the ways through which business can be maintained and outlined. There has been framed
that all such business activities of the organisation are being considered in it and there by has
been seen that the chain of the organisation with its varies business activities are followed up. It
complies that the organisational structure is the important process as it provides the method in
which the company is being working and the process in which they tends to work out to frame
out all the structural areas and nature this implies that accord and the areas of covering the
regions and the strategies which implements the working. There are various organisational
structure which are as follows: Functional organisational structure- it is mainly the structure which divides its various
organisational departments and all the departments are being headed by the functional
managers who is skilled in that role and making up the strategies for all that method. The
roles and the responsibility are fixed in this and the hierarchy is clear. The employees feel
more secure and the communication they lead is frictionless

 Divisional organisational structure- it complies to divide there business organisational
activities in all the geographical areas, market, and the services etc. in this the company
use to make all the division of the work according to the organisation. This cover out by
there own management group as they works well in the competitive market and the
culture.
Marks and Spencer use to cover the functional organizational structure as they tends to
maintain the various areas and the sections which carry out all the important framework as they
do not need much supervision for there employees and with that they use to carry the limited
number of staff in there company and working area.
Using PESTLE analysis explain how different external factors affect the performance of a
business.
PESTLE Analysis is the important tool that is being made in order to know all the problems
with the macro environment in the business. This mainly covers out all the external impact
in the company or the organisation which use to impart all the important area through which
they can cover out all the methods and the regions which is being considered. The PESTLE
analysis of the Marks and Spencer is being framed below:
 Political- It means all the government policies and the areas that can be affected in the
factors and with that all the organisation will have the impact of the government(Filser
and et. al., 2021). As M&S is the global and multinational brand which helps out to
maintain all the areas and there services and the product can be moved in all the countries
as they have the benefit of EC's trade which make them to allocate there products in all
the areas. And the government there by supports all the working of the
company(Rendtorff, 2019).
 Economic- this factors covers out all the economic rates of the company with there rise
and the interest rates that are being carried out all the foreign exchange of the products
and the development of the inflation can be contained in it. As in the time of inflation the
M&S use to decrease the price of all the products of the company and also with that make
them out various product range lessen that at times affects the profit of the company.

 Social- This mainly covers all the customers and the changing market trends with the
areas and there requirements in the company. This has been attained all the changing
demographic areas and there cultural trends which implies the working of the company.
M&S use to keep the high quality of products that help them out to maintain all the
customers satisfaction. And they try to frame all the customers changing trends in there
products.
 Technological- This involves all the advancement in the company there has been seen
that all the innovation and the techniques which is being created in all the areas. There
has been framed all the technical areas through which the growth is being served. M&S
us to cover all the Technology Transformation Program which make them to cover the
first digital business that implies all the areas through which they try top give all the
product in the company(Lüdeke-Freund and et. al., 2019).
 Legal- All the laws and the rules and regulation which are being made by the government
has to be keep on maintained by all the organisation. There has been analysed that all
such market areas will have to follow up the countries and there rulers with there
changing situation and the areas that keep on maintaining the laws. As all the countries
have varies laws and M&S trains there employees in all the countries and areas through
which they can maintain all the rules and the regulation which implies them to work in a
proper manner and maintain them to covers the laws and the rules of all the areas.
 Environmental- The changes that use to be attained in the environment and with that all
the global areas that has to be kept in mind, as all the individual there by have to try to
maintain the various cultural and the environmental impact of the company. M&S
implies that they tries to establish the green policy which helps out to protect the
environment and also with that they tend to maintain all the friendly manner products
which will not effect the environment(Whalen, 2019).

CONCLUSION
From this above report it is concluded that, business is the important stream which helps
in the growth of the organisation as this mainly helps out to maintain and refrain all the business
economics. The business helps out to frame out all the areas like small, medium, large and also
micro with that they carries out all the sole proprietorship, corporation, partnership on various
basis. The organisational structure which is used by Marks and Spencer is flat and conveys low
supervision to there employees. Furthermore, in order to clear out all the external environmental
factors PESTLE is being done which helps to create an impact in the organisation and the
companies. The positive impact is being carried out by political, Legal, technological and
environmental factor in the company and the economic and the social is being covered as the
reframe areas.

REFERENCES
Aslaksen, E.W., 2019. Technology and the Practice of Engineering. In The Engineering-
Business Nexus (pp. 261-279). Springer, Cham.
Astrachan and et. al., 2020. Values, spirituality and religion: Family business and the roots of
sustainable ethical behavior. Journal of Business Ethics, 163(4), pp.637-645.
Blachetta, M. and Kleinaltenkamp, M., 2019. Dispersion of marketing activities in business-to-
business firms. Journal of Business & Industrial Marketing.
Carlucci, D. and Schiuma, G., 2018. The power of the arts in business. Journal of Business
Research, 85, pp.342-347.
Child, J., 2019. Hierarchy: A key idea for business and society. Routledge.
Filser and et. al., 2021. Business model innovation: Identifying foundations and
trajectories. Business Strategy and the Environment, 30(2), pp.891-907.
Goldsby and et. al., 2019. Reflections on 40 years of the journal of business logistics: from the
editors.
Lüdeke-Freund and et. al., 2019. Research on sustainable business model patterns: status quo,
methodological issues, and a research agenda. In Sustainable Business Models (pp. 25-
60). Palgrave Macmillan, Cham.
Rendtorff, J.D., 2019. Sustainable development goals and progressive business models for
economic transformation. Local Economy, 34(6), pp.510-524.
Whalen, K.A., 2019. Three circular business models that extend product value and their
contribution to resource efficiency. Journal of cleaner production, 226, pp.1128-1137.